- Western Digital CEO says its HDD capacity for 2026 is already fully booked
- Enterprise clients dominate orders, leaving consumer products at only five percentof revenue
- AI-driven data growth intensifies pressure on HDD supply chains globally
Western Digital has revealed its entire HDD capacity for 2026 is apparently already fully booked, primarily due to enterprise-level agreements with hyperscalers and large cloud providers.
The surge in demand is tied to the ongoing expansion of data centers, particularly in the United States, where vast amounts of content must be stored efficiently.
HDDs remain the most cost — effective solution for storing exabytes of data, including scraped web content, processed backups, and inference logs necessary for artificial intelligence workloads.
Western Digital locks in multi-year deals
“As we highlighted, we’re pretty much sold out for calendar 2026. We have firm POs with our top seven customers,” Western Digital CEO Irving Tan declared during the company’s recent financial results.
“And we’ve also established LTAs with two of them for calendar 2027 and one of them for calendar 2028. Obviously, these LTAs have a combination of volume of exabytes and price.”
As AI adoption grows, the strain on suppliers intensifies, echoing similar pressures previously seen with DRAM, NAND, and other critical PC components.
The bulk of Western Digital’s orders comes from cloud storage providers who rely on HDDs for long — term storage of massive datasets.
Consumer products now account for only 5% of its revenue, while cloud-oriented business contributes nearly 89%.
The scarcity of available HDDs has implications for pricing, as demand exceeds supply and production schedules are unable to quickly match hyperscaler requirements.
Historically, shortages of core components such as RAM and SSDs have translated into temporary price surges, and the current situation with hard drives appears likely to follow a similar pattern.
Manufacturing constraints and the pace of AI-driven data center expansion create a scenario where enterprises may face higher costs for the storage capacity they need.
Analysts note that while HDDs remain cheaper per terabyte than RAM or other memory solutions, tight availability can still put upward pressure on procurement budgets.
Western Digital’s focus on enterprise contracts reflects the broader trend in the PC and storage industries of pivoting toward AI workloads.
Hyperscalers, cloud storage providers, and large-scale computing operations are increasingly the main consumers of high-capacity drives, while traditional desktop and consumer segments are deprioritized.
The company has aligned production to meet these demands, leaving the consumer market with limited options.
While HDD technology itself is mature, the combination of AI — driven demand, supply chain constraints, and ongoing cloud expansion means capacity will remain constrained.
It is now certain that enterprises drive HDD market dynamics, and price fluctuations seem likely to continue.
Via Wccftech
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